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Problem 1: Explain the respective outcomes reached by the courts in the following cases involving sales of land: Californian Copper Syndicate Ltd v Harris
Problem 2: Surfs Up P/L is a national retailer that sells a range of surfing and water sports equipment (surfboards, clothing, etc.) with an annual turnover of $60 million. Surfs Up purchases "Billapro" surfboards for $440 each from Billapong P/L, a large manufacturer of surfboards located at Gold Coast with an annual turnover of around $45 million, this was their only sale for the month. Surfs Up plans to sell the Surfboards at a 200% mark-up to its customers. In October last year it purchased 370 surfboards but a couple of months later (December) they discovered that 14 of the surfboards were faulty and subsequently returned these faulty surfboards to the manufacturer, obtaining a full refund. Assume both apply the accrual method of accounting.
Requirement:
Explain the GST consequences of this arrangement for both companies.
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